Columbia International Affairs Online: Policy Briefs

CIAO DATE: 01/2014

The Macroeconomic Imbalance Procedure and Germany: When is a current account surplus an 'imbalance'?

Daniel Gros, Matthias Busse

November 2013

Centre for European Policy Studies

Abstract

In this new Policy Brief, CEPS Director Daniel Gros argues that the 13 November announcement of the European Commission that Germany is running an excessive current account surplus appears to be much ado about little. All the Commission can, and will, do is to start an ‘in depth analysis’. This might lead to strong political reactions and an enormous echo in the media. But nothing of concrete substance is likely to follow.